Today we outlined how we will transform Telstra’s workplace to set ourselves to deliver on our bold new corporate strategy.

We know our size and legacy are significant assets and have contributed to our success. But we also know these can act as a barrier and get in the way of what we now need to be – nimble and agile enough to respond easily and rapidly to changing market dynamics and opportunities.

To meet these challenges head on we will disrupt ourselves by greatly simplifying our structure and ways of working.

A new streamlined operating model and organisational structure will be implemented and our ways of working will be re-aligned to increase our focus on best serving our customers, increasing the focus on product leadership, breaking down internal silos and enabling the sizeable transformation to which we are committing.

One of the first changes to come into effect will be the creation of Telstra Global Business Services on 1 July. This group will be a point of consolidation for all large scale ‘back of house’ and operational processes and functions using technology to reduce costs for large repeatable functions.

The establishment of Telstra Global Business Services combined with the accelerated simplification of our products and processes, and move to more agile ways of working is expected to lead to an overall net reduction of 8,000 employees and contractors over the next three years.

This is not about doing the same work we do today with fewer people, it is about radically simplifying our operations and product set and fundamentally changing the way we work.

We will continue to invest in the capabilities we need for the future with approximately 1,500 new roles in areas such as software engineering, and information and cyber-security.

We are working through the detail in relation to this and expect to be able to share more information in July.

Our commitment to our people and customers

We recognise this transformation represents a significant change for our people and we will be consulting with them throughout the process. We will also have two new programs in place to support all of our employees:

  • A transition program for those leaving Telstra will provide enhanced outplacement support.
  • For those remaining, we will provide support to upskill and transition to new ways of working in our leaner, more agile organisation.

To support the programs we intend to make available initial funding of up to $50 million.

For our customers, we will ensure minimal disruption by initially focusing on reducing executive and management roles rather than our customer facing teams.

Telstra’s future workplace

These changes are the first step in making Telstra a fundamentally easier place to work at and do business with.

We will be smaller, with flatter management layers and structured to support easier, quicker ways of working so we are agile enough to deal with constant change and respond to customer needs.

We will have fewer products, delivered more quickly and at a lower cost. And there will be an emphasis on developing skills to support new technologies and services.

While the size and shape of our organisation will evolve, our success will continue to be built on people with deep connection to our customers, expert knowledge and technical expertise.